Tag Archives: Credits

VIDEO: Facebook Credits Discussion

Bloomberg provides an interesting video interview with IFEELGOODS, Inc CEO, Scott Silverman discussing Facebook Credits virtual currency.

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Filed under Facebook, Facebook Credits, social games

Bringing the Hammer Down

As widely anticipated, Facebook makes their virtual currency, Facebook Credits a  mandatory option for all social game developers that use a payment system.  Articles and analysis from:

The Wall Street Journal ” Facebook began testing Credits as a form of currency with some developers in 2009. It says they are now used in more than 350 applications from 150 developers, representing more than 70% of virtual goods transactions volume on Facebook.”

WebProNews “ Users and developers shouldn’t react with too much dismay.  Other in-game currencies will be still be permitted, and Facebook intends to let developers keep 70 percent of the revenue from transactions that involve Facebook Credits.”

The Street ” While some game developers have their own currency payment methods, most large app companies already use Facebook Credits.” 

GigaOM ” Facebook developers will have the option of using their own payment system in addition to Facebook Credits but Facebook will be offering incentives like early access to product features and on-site promotion to help get them on board fully.”

Forbes “ Forex traders and global conspiracy theorists take note: with close to 600 million people using the system, we could be watching a Dollar rival spring to life. To the bunkers! ”

TechCrunch “ This is about more than purple cows and gold coins, too — in the long run, Facebook has a strong incentive to maximize the number of users who are signed up for Credits. Right now the vast majority of Credits are spent on gaming, but it’s very likely that Facebook will eventually begin allowing third-party websites to offer a ‘Pay With Facebook’ option, and that may include everything from digital content to physical goods.”

Video: interviews with social game developers concerning the initial Facebook Credits announcement at the  f8 Conference (about 10 months ago)

 

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Virtual Showdown

Social gaming giant Zynga goes for the jugular and files for a patent for  non-redeemable virtual currency. Is this move intended as a bargaining chip with Facebook or something much larger? Articles and analysis from:

TechCrunch ” While at first glance it seems like the patent’s strictures only pertain to poker chips, it explicitly references Zynga games Zynga Poker and Farmville in its “Examples of Embodiments” section, which delinates both “Non-Redeemable Virtual Currency” and “Non-Redeemable Virtual Poker Chips” as inventions that Zynga is claiming the rights to.”

AllFacebook ” For Facebook the stakes are higher. The social networking site earns a 30% cut every time Credits are used to buy virtual goods in a game. With the burgeoning popularity of social games on Facebook, it would be a serious blow if it lost this growing source of revenue.”

VentureBeat ” The patent filing, on which Zynga CEO Mark Pincus’s name is listed as one of the inventors, is arguably defensive, potentially orestalling intellectual-property claims against Zynga. But it could also give Zynga leverage in its negotiations with Facebook, the social network which connects most of Zynga’s players with each other.”

Online-Casinos.com ” Zynga’s patent application points out however that its virtual-currency uniqueness is that the currency exchange is only one-way. Players can put money in but they can’t take it out thus circumventing the online gambling dilemma.”

Tom’s Guide ” Essentially the company may be trying to patent the process of purchasing virtual money that cannot be re-sold. The patent also seems to indicate that Zynga may implement a fraud prevention system to inhibit players from using cash to purchase virtual funds from other players within Zynga products.”

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Filed under Facebook, Facebook Credits, social games, virtual currency, Zynga

Facebook ramping up Credits

Inside Facebook provides a recap of Facebook’s recent activity regarding rolling out its Credits virtual currency. From the article:

” Key to Facebook’s plans for Credits is getting more payment providers in place, a process that has been accelerating for months.”

In related news, VentureBeat reports that Rixty partnered with Coinstar to provide an easy method of converting loose change into Facebook Credits at grocery stores. From the article:

” In addition to the free Facebook Credits, users can buy Credits by taking their coins to a Coinstar machine and getting a Rixty voucher.”

The Wall Street Journal provides this Opinion piece. 8/13/2010

” The biggest shift in the social-gaming world — which includes titles like Mafia Wars and Restaurant City — is likely to be a battle over payment.”


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Filed under Facebook, Facebook Credits, social games, virtual currency, virtual goods

Half of Facebook users play Social Games

TechCrunch discusses an astounding figure mentioned by Playdom CEO John Pleasants who said that half the people on Facebook play Social Games and their time spent “in-game” is a mind-boggling 40% of their time on the network. This presents a massive opportunity to monetize via Facebook Credits virtual currency.

” But the most interesting thing Pleasants noted was that he recently heard (from his own source, apparently) that half of all users on Facebook now play social games. More impressively, 40% of total usage time on the service is spent on these games.”

Additional coverage from Inventorspot

” The beauty of bundling micropayments via Facebook Credits is that a single virtual currency could increase the size of the market exponentially by making it easier for users to purchase items where they don’t have to continually use  credit cards.”

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Filed under Disney, Facebook, Facebook Credits, Playdom, social games, social networks, virtual currency, virtual goods

Facebook Credits….the new money?

Advertising Age has an excellent article about the underlying implications of a successful Facebook Credits virtual currency by Ian Schafer.

” If Facebook continues its growth on mobile platforms, then Facebook Credits will have the opportunity to become the default mobile payment currency accepted worldwide.”

UPDATE : TechCrunch reports that Facebook expects up to 1/3 of their revenue to be generated from their virtual currency called Credits within the next 12 months.

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Burying the Hatchet

Clash of the Titans  was averted when social gaming giant Zynga and Facebook decided to end their dispute over Credits and notifications and sign a five year agreement to continue their takeover of the Internet.  Articles and analysis from:

Gamasutra ” Widely-reported tensions between Facebook and Zynga, the largest developer of games for its platform, seem to have dissolved with a new five-year agreement on virtual currency.”

TechCrunch ” Facebook’s director of communications Larry Yu tells us that the 30 percent fee has remained the same for this deal. But according to a source, Zynga was able to win some concessions and the company walked away pleased with the deal.”

CNET ” One of the biggest companies to emerge on Facebook’s platform was Zynga, which now has around 230 million monthly active users (Facebook has about 400 million).”

San Francisco ChronicleNeither firm would comment on recent published reports that their relationship was strained and that Zynga was preparing to break away with its own service called Zynga Live.”

Technorati

Los Angeles Times

PC World

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Filed under Facebook Credits, Partnerships, Uncategorized, Zynga